Over two years of haggling ended when the EU
legislature approved the budget, which will fall to 960 billion
euros ($1.3 trillion budget), from 975 billion euros, for the
seven years between 2014 and 2020.
The cut had been sought by several EU countries which wanted to
see austerity at the EU level at a time when many were pursuing
cutbacks at home.
EU President Herman Van Rompuy called the spending commitments
"a realistic budget for Europe" which has been struggling
through years of financial crisis.
The budget fell some 40 billion euros short of the first
proposals of the EU head office which had wanted more clout to
push through investment and employment programs.
Britain had been first in line to hammer home the message that
the EU should limit spending, if only to contain its ambitions
to encroach on national policies.
"The difficult budgetary situation in the member states has
resulted for the first time in a lower budget," said Jean-Luc
Dehaene, who negotiated the deal for the parliament. He saw
difficult times ahead.
"This is especially problematic as in times of national
austerity the EU budget should be higher to compensate for
declining investments in the member states."
The Parliament meeting in Strasbourg, France, approved the
budget by 537 votes to 126, with 19 abstentions. The member
states only need to reconfirm the agreement in the coming weeks,
which is not expected to pose any problem.
Also on Tuesday, the EU's highest court ruled that the member
states were within their rights to block automatic pay increases
for EU officials in 2011 amounting to 1.7 percent.
The European Court of Justice ruled that EU nations were within
their rights to consider the economic downturn sufficed to block
the increase.
Again, Britain was happy to applaud the ruling.
"When governments and families across Europe are taking
difficult decisions to make savings, it would be wrong and
irresponsible for the EU to not show similar restraint," said
Nicky Morgan, a British Treasury minister.
[Associated
Press; RAF CASERT]
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